APAC expected to be leading market for battery energy storage through 2026

Demand for battery energy storage is expected to largely come from the APAC region through 2026, according to the latest forecast from GlobalData. 

GlobalData’s latest report suggests that the Asia-Pacific region will be responsible for 68% of the global market value for battery energy storage, with the global market expected to be valued at $10.84 billion in 2026. That means the APAC region will be responsible for the lion’s share of that at $7.33 billion. 

China, Japan, India, South Korea and Australia are expected to be leading markets in the region, while elsewhere in the world it’s expected that the US, Germany, and the UK will play a leading role. 

It’s unsurprising to see Asia Pacific at the top of the table, after all countries such as Australia have been early adopters of large scale battery energy storage. In fact, it’s reported that the Tesla-powered Hornsdale Power Reserve (HPR) in South Australia has helped prevent more than three power outages in the region since it came online. 

Bhavana Sri Pullagura, Senior Power Analyst at GlobalData, noted, “A fall in battery technology prices, increasing need for grid stability and resilience of the integration of renewable power in the power market are some major factors that contribute to the growth.”

Despite Australia’s early adoption and existing large-scale facilities, China is expected to lead the global battery energy storage market with $4.04 billion in 2026. A mammoth target of 1,200 GW of wind and solar capacity will provide considerable growth opportunities to the energy storage market over the forecast period.

Pullagura added, “The rapid growth in demand for electricity and the wider use of renewable integration will keep the demand for battery energy storage market buoyant in other countries, leading to a significant growth in the market over the forecast period. Grid transformations, improving electrification rates, and electricity provisions for the rapidly growing population will create market opportunities.”

Over the last decade, various new digital and smart technologies have been integrated. Countries have been aggressively promoting the modernisation of grids and enhancing the grids’ capability to meet the requirements of the present and future. Additionally, batteries are being deployed to aid smart grids, integrate renewables, create responsive electricity markets, provide ancillary services, and enhance both system resilience and energy self-sufficiency.

Pullagura concluded, “GlobalData believes that encouraging policies and high electricity charges are also nudging the market to renewables and/or storage plus renewables at the consumer level. As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a crucial role in the transition and transformation of the power sector.”